Minimum savings will come from smart meters

There has been a lot of talk about how the rollout of smart meters for households and businesses in the UK will provide a win win situation, where consumers and businesses will save money on bills and energy firms won’t have to send out inspectors because the usage data will be sent to them automatically. It is claimed that these smart meters, which are digital meters, will put an end to the unreliable estimated bills that energy firms send out.

However, it has recently been revealed that consumers will not benefit from the smart meters because the cost of the rollout will be factored into their bills, which effectively means that they will be paying for them, yet the savings that they are set to make only comes to around £23 by 2020. The cost of the rollout is said to be around £11.3 billion and the Department for Energy and Climate Change has said that this is something that consumers will end up paying for.

The estimated saving is only 2 percent of the average household annual energy bill, and officials have said that it does not take into account any increases in energy costs over the coming years. Ofgem, the UK’s energy regulator, has estimated that bills could increase by between £168 and £700 a year by 2016 because energy firms need to invest in new power stations, which will result in costs being passed onto consumers.

Chris Huhne, the Climate Change and Energy Secretary said: “Smart meters are a key part of giving us more control over how we use energy at home and at work, helping us to cut out waste and save money. In combination with our plans to reform the electricity market and introduce the green deal for homes and businesses, the roll-out of smart meters will help us keep the lights on while reducing emissions and getting the best possible deal for the consumer.”

Tags: Household, win situation, electricity market, Minimum savings, households, annual energy, Department for Energy and Climate Change, business

Survey shows households in UK still overstretched

A recent study has shown that households in the UK are still overstretched financially, with the findings showing that more than 50 percent of them have been struggling to repay their debts. The study was carried out by the Bank of England and involved polling around two thousand people.

According to the results of the study more than half of households were struggling meet repayments on debts such as credit cards, loans, and other unsecured debts. The results also showed that around 22 percent of consumers had been put off spending money because it was becoming more difficult to borrow money – this reflected an increase from the 16 percent that said the same thing in a poll carried out last year.

In addition to looking at difficulties with debt repayments and spending the survey also looking into how people thought they would be affected by government cutbacks. The results showed that a massive 90 percent of consumers thought that they would be affected by the cutbacks and spending cuts that were being imposed by the coalition government.

However, despite the fact that so many believe that the cutbacks will affect them less than 50 percent had actually taken any steps or action to try and prepare themselves for the possibility of being affected, such as saving more money, looking for a new job, or working longer hours. Reliance on credit cards and loans has been growing according to the Bank of England report, and a quarter of households are struggling to meet payments on bills.

In its report the Bank of England noted: “The burden of unsecured debt has risen this year, most likely reflecting a combination of weak earnings growth and the interest rates on unsecured debt remaining high over the past two years.”

Tags: United Kingdom, Household, report, fact, spending, debt consolidation, addition, weak earnings growth

Many homeowners could have worthless insurance

It has been revealed that millions of homeowners in the UK could be hanging on to insurance policies that are actually worthless as a result of a loophole relating to past convictions, according to a recent report. Read more

Tags: home, tiny fine, homeowners insurance, policy, economics, Household, group, home insurance

£31,000 fall in average household wealth

It has recently been reported that average household wealth in the UK has fallen by around £31,000 since last year, with households seeing their household wealth drop as a result of the global credit crunch and the ongoing recession. Read more

Tags: Household, homes in addition, billions, property prices, factor

Many pensioners set to lose their home care facilities

According to a recent report many pensioners in the UK are set to lose their home care facilities such as meals on wheels and help with shopping, washing, and household chores, and this is as a result of government cutbacks. Read more

Tags: old age, pensioners, result, sector, Business Finance

Brits try and make ends meet by taking in lodgers

In the ongoing difficult financial climate many households in Britain have been struggling to make ends meet, and this situation has been made worse by the ongoing recession, which has resulted in soaring unemployment levels leaving many households with a vastly reduced income. Read more

Tags: lodgers, Brits, twelve months, rent room, Mortgages, Insurance, Household, recent report

Ways to earn and save money online

Many of us are experiencing financial problems at present due to the difficult financial climate and the recession, and most of us want to find ways to try and improve out situations by savings more money or earning a little more. Read more

Tags: Household, price, save money, earn money online, amount, business, money saving tips, exchange

RICS makes prediction on house prices

Recently the Royal Institute of Chartered Surveyors has made some predictions with regards to house price movement in the UK. Read more

Tags: Royal Institute of Chartered Surveyors, house prices, Household, downturn, Royal Institution of Chartered Surveyors

Will you be cutting back on your heating this year?

With energy prices having rocketed twice over the course of this year, it seems that an increasing number of us will have to cut back on our energy usage in order to cope with rising bills. Many elderly people will be doing just that, and recent surveys have revealed that millions of elderly people will be heating up just one room in their homes or even staying in bed in order to try and keep warm over the winter months. For many the colder months are set to be miserable ones. Read more

Tags: energy bills, order, money, whilst, christmas, Household, home, heating costs

Rising Energy Costs Could Be Disastrous For Households

With the rising costs of gas and oil, millions of households in the UK could find themselves in critical financial difficulty in the coming months. This is the warning of an MP committee in light of the fact that the energy costs faced by many manufacturing companies in the UK are substantially higher than in the rest of Europe. Read more

Tags: Household, storage, foresight, gas producing companies, manufacturing, lack, europe, ofgem

Saving money on energy bills

Over recent months the cost of heating has soared, and this is the result of energy companies hiking up the cost of energy usage twice since the start of this year. Households, many of which are already cash-strapped, have found that they can barely afford to make ends meet as a result of the various rises in bills and living costs. All of the major energy firms have now increased the cost of energy usage, and this move is set to plunge many people into fuel poverty. Read more

Tags: assistance, central heating, whilst, Building engineering, Insulated glazing, Household, boilers, energy prices

MP claimed consumers were wealthier than ever

Most consumers are now feeling the pinch to put it mildly with household budgets stretched to their limits due to rising living costs, soaring petrol prices, increased food costs, and high borrowing costs. Yet, according to a recent report one Labour MP has branded the British public as being miserable and has said that consumers in the UK are actually wealthier than ever. Transport Minister, Tom Harris, made the comments some weeks ago, and was slated by other officials given the financial crisis that many households are suffering. Read more

Tags: prime minister, arrogance, shopping, borrowing, MP, new level

Holidays still important to Brits

According to a recent report holidays are still important to Brits despite the fact that the global credit crunch has impacted heavily on household finances. In fact, the report suggests that many people would actually rather cut back on every day goods and luxuries than have to give up their yearly holiday, even though many are suffering from really strained household finances. Read more

Tags: holidays, way, conscious travellers, Household, food

Pensioners likely to ‘rely more on savings’

Pensioners are expected to increasingly rely on their savings as their as pensions are gradually offering lower payouts, the director of Churchouse Financial Planning has said.

Keith Churchouse said that it is likely to become more common for people to dip into their savings as they become older and retire as they will probably be unable to rely on their pensions.

He noted that some people are hesitant about paying money into a pension scheme and those who choose not to have a personal account may find themselves dependent on the government in the future.

Mr Churchouse went on to say: “However, I don’t know whether the government has the view that if you actively opt out of the scheme, there is going to be a caveat to say that you can’t pop back to the state later.”

According to the Fidelity Retirement Index, the average household can expect to live off 42 per cent of their current income when they stop working full-time, which is far below the two-thirds that the Pensions Commission is proposing.

Tags: Labor, Household, Financial services, Fidelity Retirement Index, cent, Pension, state

People using credit to ‘patch holes in their budgets’

With financial conditions worsening under the current credit crunch, people are increasingly turning to credit to make up any shortfalls in their budgets, Fool.co.uk has said.

David Kuo, head of personal finance at Fool.co.uk, also said that credit fraud is likely to increase as people struggle to cover their living expenses.

People are increasingly seeing their personal finances being stretched as they face bigger outgoings due to rising household expenses. At the same time, salaries have not risen fast enough to cover the increased costs, Mr Kuo said.

Capital Economics recently reported that average earnings growth is set to remain at just under four per cent a year while food inflation is expected to stay at six per cent over the coming months.

“Initially it just starts with [people] saving a little less money…the next step is [people] start raiding [their] savings in order to try and cover [their] outgoings. The third step is [people] have to use credit in order to try and patch up any holes in [their] budget,” commented Mr Kuo.

Tags: Simple Dollar, fool, economics, budget, order, food, business, Household

Interest rate cuts may not affect credit availability, says expert

The Bank of England’s interest rate cuts are unlikely to have an effect on the declining availability of credit, says economic research consultancy Capital Economics.

Lenders reported that during the first quarter of 2008 they had reduced the availability of secured credit to households, and expect to reduce it further over the next three months.

This means that borrowers will be faced with putting down bigger deposits for mortgages than before, as well as paying higher mortgage rates.

Similarly, household unsecured credit availability has also dropped over the last three months with predictions that it will also continue to decline in the future.

Vicky Redwood, UK economist at Capital Economics, said that yesterday’s interest cuts would not make “a huge amount of difference” since lenders had failed to pass on previous cuts in interest rates to borrowers.

Borrowers will nevertheless benefit in the short-term from the cuts and lending rates should eventually drop, however Ms Redwood noted that “things are likely to get a little worse before they get a little better”.

Tags: Household, credit availability, Mortgages, rate, little better, availability

Online sales helped by the credit crunch

As the effects of the credit crunch take hold consumers are increasingly looking to the internet for bargains, one financial expert has said.

Shopsafe.co.uk said that the current trend for consumer bargain hunting was related to the tightening of purse strings brought on by the effects of the credit crunch.

Simon Crisp, director of Shopsafe.co.uk, stated that the future of online shopping was viewed to be strong with fashion and household goods being the main sectors benefiting from the increase in online spending.

“This year certainly people are looking for bargains online; they’re looking to squeeze every penny out of their budget,” he continued.

In a report from the IMRG Capgemini e-retail sales index, online sales in February were up 46 per cent on the same point last year to a record high of £4.2 billion.

Meanwhile, Marks and Spencer announced in November 2007 that their re-branded M & S Direct site has seen online sales increase by 60 per cent.

Tags: Simon Crisp, retail, financial expert, director, record high, tightening, Household

‘Blase attitude’ to home insurance to blame for lack of cover

Consumers’ blase attitude to home insurance could be the motivation behind many consumers failing to take out cover, claim financial experts.

Norwich Union estimated that, out of the 25 per cent of home owners who are supposedly without contents insurance, more of them are to be found in larger cities and built up areas as opposed to rural communities.

Alison Palmer, household underwriting consultant for Norwich Union, said that many people take the view that “‘well, it’ll never happen to me. I’ll be alright, I haven’t got anything worth insuring anyway’”.

“As you’ve probably seen from the events that happened last summer it can happen easily. People lose everything and it’s a horrible thing,” she added.

The number of consumers without contents insurance has not changed in the past few years, concluded Ms Palmer.

New research from Legal & General, shows that Britons keep their most valuable personal possessions and documents in their kitchens.

According to reports, the UK insurance industry paid out £9 million to householders for property damage or loss of possessions in 2006.

Tags: norwich union, number, property damage, claim financial experts, home, Household, home insurance, lack

Unpaid bills put pressure on households

Household budgets are being squeezed with millions of bills going unpaid in the last six months, say financial experts.

Findings from MoneyExpert.com reveal that as many as 6.9 million bills have gone unpaid since June last year.

Sean Gardner, chief executive of MoneyExpert.com, said: “For some time we have been waiting to see how the financial squeeze would affect the average household.”

“Nearly seven million unpaid household bills is a fairly conclusive sign that we are feeling the effects,” he added.

Figures showed that out of all the bills, most people are likely to miss paying their council tax, with one in twenty admitting to having paid it late or not all in the past six months.

However, a further 1.39 million people have said they have had difficulty in meeting payments on household bills such as gas and electricity in the second half of 2007.

Meanwhile, additional research from MoneyExpert.com has revealed that up to 2.6 million consumers plan to start the New Year by transferring their credit card debts.

Tags: difficulty, financial experts, credit, executive, MoneyExpert.com reveal

Don’t DIY before checking your insurance

Brits are being advised to check their home insurance before undertaking home repairs or DIY projects.

New figures released today show that three quarters of a million people have inflicted £350 million of damage to their homes attempting to recreate improvements they have seen on home makeover TV shows.

While many household accidents – such as cracking a bath or smashing the glass in doors – are usually covered by standard buildings and contents policies, extensive remodelling can put DIY enthusiasts at risk of causing damage they are not covered for.

Damage such as drilling through pipes or falling through a ceiling are rarely covered in standard policies, according to Halifax Home Insurance.

“It all looks so simple on TV, making it easy to forget that the work on makeover shows is being carried out by highly trained and skilled professionals. But if you don’t know what you’re doing we’d advise anyone planning any major improvements that DIY should really stand for Don’t Involve Yourself,” said Vicky Emmott, Halifax Home Insurance.

“Indeed trying to tackle certain areas that you are not qualified for, such as electrics or plumbing could invalidate your home insurance and leave you liable for the cost of any subsequent damage. It’s far better to employ a reputable tradesman than to risk damaging your home by going it alone.”

Tags: improvements, Household, GBP, electrics, tradesman

BIBA: Students should take out contents insurance

Students are advised that they should get their valuables covered while living away from home.

The British Insurance Brokers’ Association (BIBA) said that many students are not covered by their parents’ household insurance.

It warned that this leaves their valuables at risk, and while most students do not prioritise getting insurance, it is a sensible thing to do.

Graeme Trudgill, technical services manager for BIBA, said that a quarter of all parents do not have home contents cover at all, meaning that many students could find themselves spending a lot on replacing lost items.

He added: “A lot of students these days have laptops, iPods, digital cameras, DVDs, mobiles, stereos… and that can add up to a lot of money.”

Recent Home Office figures show that people under the age of 24 are more likely to be burgled and that as many as one in three students becomes a victim of crime.

Furthermore, the London Student Housing Guide found that the average cost of a burglary to a student is £900.

Tags: BIBA, Association, Household, GBP, laptops, household insurance, Fashion, housing

How safe is your home?

Homeowners are being encouraged to take a little time for reflection and ask themselves if they are taking adequate precautions to secure their homes.

Legal & General has launched its Safe as Houses online survey which questions people about their views on home security and safety.

The insurance firm says that it aims to get a better understanding about what troubles today’s homeowners when it comes to home security and is keen to find out what precautions, if any, are being taken.

The firm has gauged some understanding about current safety concerns with its Safety Uncovered Index and found that 34 per cent of Brits do not open their door to strangers.

However, Bosses want to carry out a more in-depth study in order to keep up with the changing face of home security.

“As a leading household insurer knowing our customers concerns will help us to meet the changing needs of today’s modern home, by developing products and services that let busy Brits get on with their lives, knowing their home is safe,” explained Ruth Wilkins, head of communications for Legal & General’s general insurance business.

“Installing a burglar alarm, good quality locks and security lighting or living in a Neighbourhood Watch area can all help to deter a burglar entering a person’s home.”

Many insurers, including Legal & General, will offer reduced premiums to their customers if they take some of the security precautions mentioned.

Tags: safety.The insurance firm, today's modern home, door, home, Houses online survey, Household, face, household insurer

Neighbours cost homeowners £93.4m

Brits spend more than £93.4 million each year on damage caused by their neighbours.

New research by Abbey has found that around 543,000 of us have to endure household damage by our neighbours every year.

Londoners are the worst affected, with ten per cent encountering damage, while people in Wales are the least affected.

The average insurance claim made after a neighbour has caused damage is around £172 but one in twenty is hit for £1,000 or more.

“Not all damage caused to people’s homes by their neighbours is malicious. In many cases this type of damage is accidental. However there are often misconceptions about whose insurance is to be used to claim for it,” explained Prasad Shastri from Abbey.

“It is always the policy holder of the damaged home that will need to submit a claim. For example, if your neighbour was to cut down a tree that accidentally breaks a window, it is only you that can claim for damage to your property, not your neighbour, highlighting how important it is for you to make sure your insurance covers you against accidental damage caused to your property by other people.”

Homeowners are also warned by Abbey that buying insurance on price alone can be dangerous as it is important to make sure that you have adequate cover for your home and its contents.

Tags: window, abbey, misconceptions, Insurance, Household, accidental, Wales, price